Business Purchase Agreement with Guarantee (pandemic/epidemic/public health emergency warranties)
A business or asset sale involves the seller transferring the assets that make up a business to the buyer. This Business Purchase Agreement with Guarantee (pandemic/epidemic/public health emergency warranties) is drafted for use where the transaction takes place during a pandemic, epidemic or other public health emergency, and where the buyer requires a guarantee as part of the deal structure.
With Covid-19 now firmly in the rear view mirror, this template has been updated and all references to Covid removed. However, a business or asset sale may still take place during a generalised or localised public health emergency and this template seeks to cater for that situation.
What does Business Purchase Agreement with Guarantee (pandemic/epidemic/public health emergency warranties) do?
It documents a relatively straightforward business/asset sale on a short-form basis, includes a guarantee supporting the seller’s obligations, and provides an enhanced warranty package aimed at risks associated with a pandemic, epidemic or public health emergency.
What does Business Purchase Agreement with Guarantee (pandemic/epidemic/public health emergency warranties) cover?
- A guarantee providing comfort that the guarantor will guarantee the seller’s performance under the Business Purchase Agreement.
- Additional warranties intended to address uncertainty and business disruption connected with a pandemic, epidemic or public health emergency.
- Matters that may be relevant depending on the business being sold, such as employees and workplace health and safety, customers and supply chain disruption, legal and regulatory compliance, and business continuity.
The warranties included in this template are only a starting point and may need to be added to depending on the business concerned.
When should you use Business Purchase Agreement with Guarantee (pandemic/epidemic/public health emergency warranties)?
Use this agreement where you are documenting a business/asset sale that is intended to be relatively simple in structure, the buyer requires a guarantee, and the parties want additional warranty protection to address risks arising from a pandemic, epidemic or other public health emergency.
Key tax point
Other than provisions related to VAT, this template does not include tax provisions or tax warranties. Independent tax advice must be sought.
Business Purchase Agreement with Guarantee (pandemic/epidemic/public health emergency warranties) is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.